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Do you notice, though, that I am doing this for the h1 tag, not just for #logo. I have a white background and borders around the h1 tag. When I have added padding, it just makes the space between the actual word and the top border get larger, but it stays stuck to the top of the page rather then moving itself down.

Padding - between border and content (i.e. inside the border), takes on the background colour of the element.

Margin - between border and surrounding content (i.e. outside the border), is transparent so that the surrounding content can be seen through it.

The only exception is that if you have 2 divs following each other in the flow of the document then only one of the margins between them will be used, the largest one. For example where a div with margin: 20px is followed by a div with margin: 10px then there will only be 20px of space between them.

There is an exception to this too if the divs are floated then normal margins are used.

While you were working on that, I was working on an alternative design for the site. I will definitly take a look at your solution though. BTW - what exactly does having the side carrot html > body do?